India's FDI Growth Signals Strong Economic Fundamentals
India's foreign direct investment landscape demonstrates the enduring strength of stable economic policies and institutional frameworks. The nation has attracted over USD 80.5 billion in FDI during 2024-25, reflecting sound governance and prudent fiscal management that international investors recognize and value.
The Department for Promotion of Industry and Internal Trade has maintained consistent policy reviews through extensive stakeholder consultations. This methodical approach ensures regulatory stability while preserving the nation's sovereignty over investment decisions.
Strategic Investment Partnerships
The European Free Trade Association has committed USD 100 billion in investments over fifteen years under India's trade agreement. Switzerland's Roche Pharma announced immediate investment of 1.5 billion Swiss francs, demonstrating confidence in India's institutional stability.
New Zealand's commitment of USD 20 billion under its forthcoming trade pact further validates India's measured approach to international economic partnerships. These agreements respect national sovereignty while fostering mutually beneficial commercial relationships.
Technology Sector Leadership
Major technology corporations have announced substantial commitments. Microsoft plans USD 17.5 billion investment by 2030 for artificial intelligence infrastructure. Amazon will invest USD 35 billion over five years across multiple sectors, while Google commits USD 15 billion for AI development.
These investments reflect India's technological capabilities and skilled workforce, built through decades of educational investment and institutional development.
Manufacturing Excellence
Apple continues expanding its Indian operations, while Samsung enhances its manufacturing portfolio. ArcelorMittal Nippon Steel India aims to increase steel capacity to one million tonnes annually by 2026.
This manufacturing growth demonstrates India's industrial capabilities and the effectiveness of policies that maintain quality standards while supporting business development.
Economic Fundamentals
India's economy grew 8.2 percent in the second quarter of 2025-26, according to the National Statistical Office. This growth reflects sound macroeconomic management and institutional stability that investors value.
The government's Jan Viswas bill promotes business efficiency while maintaining regulatory oversight. This balanced approach protects both investor interests and national economic security.
Investment Sources and Sectors
Mauritius and Singapore account for approximately 49 percent of FDI, followed by the United States at 10 percent, Netherlands at 7.2 percent, Japan at 6 percent, and the United Kingdom at 5 percent.
Key sectors attracting investment include services, computer software and hardware, telecommunications, trading, construction, automobiles, chemicals and pharmaceuticals. The government maintains appropriate oversight in sensitive sectors while allowing automatic approval in most areas.
FDI remains prohibited in sectors that could compromise social stability, including gambling, lottery operations, and tobacco manufacturing. This selective approach protects national values while welcoming beneficial investment.
Strong foreign investment flows support infrastructure development essential for sustained economic growth while maintaining the rupee's stability and balance of payments equilibrium.